MEETING NO. 3236 JOURNAL OF PROCEEDINGS BOARD OF …

MEETING NO. 3236 JOURNAL OF PROCEEDINGS

BOARD OF TRUSTEES OF THE POLICE AND FIRE RETIREMENT SYSTEM OF THE CITY OF DETROIT

HELD THURSDAY, APRIL 18, 2019

09:00 A.M. RETIREMENT SYSTEMS’ CONFERENCE ROOM

ALLY DETROIT CENTER, 500 WOODWARD; SUITE 3000

DETROIT, MICHIGAN 48226

TRUSTEES PRESENT MICHAEL F. BERENT ELECTED TRUSTEE/FIRE MARK DIAZ ELECTED TRUSTEE/POLICE MATTHEW GNATEK ELECTED TRUSTEE/POLICE ANGELA R. JAMES EX/OFFICIO RETIRANT TRUSTEE/POLICE/MAYOR’S DESIGNEE MEGAN S. MOSLIMANI EX/OFFICIO TRUSTEE/CORPORATION COUNSEL /VICE-CHARPERSON JOHN NAGLICK EX/OFFICIO TRUSTEE/FINANCE DIRECTOR GEORGE ORZECH ELECTED RETIRANT TRUSTEE/FIRE JEFFREY PEGG ELECTED TRUSTEE/FIRE/CHAIRPERSON DEAN PINCHECK ELECTED TRUSTEE/FIRE PORTIA ROBERSON EX/OFFICIO TRUSTEE/MAYOR’S ALTERNATE JOHN SERDA ELECTED TRUSTEE/POLICE GREGORY TROZAK ELECTED RETIRANT TRUSTEE/POLICE STEVEN WATSON EX/OFFICIO TRUSTEE/DIRECTOR OF FORECASTING AND ECONOMIC

ANALYSIS-BUDGET DEPARTMENT/BUDGET DIRECTOR’S DESIGNEE TRUSTEES EXCUSED SHAWN BATTLE EX/OFFICIO TRUSTEE/FIRE PREVENTION CHIEF/MAYOR’S DESIGNEE BRENDA JONES EX/OFFICIO TRUSTEE/CITY COUNCIL PRESIDENT CHRISTA MCLELLAN EX/OFFICIO TRUSTEE/TREASURER ALSO PRESENT

David Cetlinski Executive Director Kelly Tapper Assistant Executive Director Ryan Bigelow Chief Investment Officer Ronald King General Counsel TaKneisha Johnson Administrative Assistant IV Dr. Oscar King III Board Lobbyist

STAFF EXCUSED

Bruce Babiarz Public Relations Advisor

POLICE AND FIRE RETIREMENT SYSTEM MEETING NO. 3236 CITY OF DETROIT APRIL 18, 2019

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VICE-CHAIRPERSON

MEGAN MOSLIMANI

A verbal Roll Call commenced at 09:08 a.m. and Vice-Chairperson Moslimani called the meeting to order. Present at Roll Call: Michael F. Berent, Mark Diaz, Matthew Gnatek, John Naglick, George Orzech, Dean Pincheck, John Serda, Gregory Trozak and Steven Watson Re: Approval of April 18, 2019 Agenda Matthew Gnatek moved to approve the agenda dated Thursday April 18th, 2019. Mark Diaz supported. The motion passed unanimously. Re: Approval of DROP Retirement Applications Mark Diaz moved to approve the DROP Retirements as listed below. Matthew Gnatek supported. The motion passed unanimously.

NAME, TITLE, DEPARTMENT Tony B. Cotton - Police Officer - Police

RETIREMENT TYPE-PLAN Drop - New

SERVICE CREDIT-EFFECTIVE DATE 15 04 01 – 03 15 19

NAME, TITLE, DEPARTMENT Stevie E. Hayes – Police Sergeant - Police



NAME, TITLE, DEPARTMENT Christopher Hicks - Police Officer - Police



NAME, TITLE, DEPARTMENT Shantell T. Jenkins - Police Officer - Police



NAME, TITLE, DEPARTMENT Dietrich L. Lever - Police Sergeant - Police




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Re: Approval of DROP Retirement Applications- Continued

NAME, TITLE, DEPARTMENT Brian T. Ross - Police Officer - Police



NAME, TITLE, DEPARTMENT Ronaldo L. Turner - Police Officer - Police


SERVICE CREDIT-EFFECTIVE DATE 23 01 04 – 03 14 19 Re: Approval of HYBRID Retirement Applications Matthew Gnatek moved to approve the HYBRID Retirements as listed below. Mark Diaz supported. The motion passed unanimously.

NAME, TITLE, DEPARTMENT Dietrich L. Lever - Police Lieutenant - Police

RETIREMENT TYPE-PLAN Hybrid - Drop


NAME, TITLE, DEPARTMENT Ronaldo L. Turner - Police Officer - Police

RETIREMENT TYPE-PLAN Hybrid - Drop



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Re: Approval of Retirement Applications Gregory Trozak moved to approve the Retirements as listed below. Mark Diaz supported. The motion passed unanimously.

NAME, TITLE, DEPARTMENT Robert C. Bolden – Police Officer - Police

RETIREMENT TYPE-PLAN Service - New


NAME, TITLE, DEPARTMENT Derek Stone (Child of Deceased Derek

Stone) – Fire Fighter Driver - Fire

RETIREMENT TYPE-PLAN Non-Duty Death Child - New

SERVICE CREDIT-EFFECTIVE DATE 20 06 04 - 02 25 19

NAME, TITLE, DEPARTMENT Kelley Stone (Widow of Deceased Derek

Stone) – Fire Fighter Driver - Fire

RETIREMENT TYPE-PLAN Non-Duty Death Widow - New

SERVICE CREDIT-EFFECTIVE DATE 20 06 04 - 02 25 19

NAME, TITLE, DEPARTMENT Marcia L. Wimbush – Police Officer - Police

RETIREMENT TYPE-PLAN Service - New



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RECEIPTS: The Board received the following receipts for Acknowledgment:


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Re: Approval of Disbursements Mark Diaz moved to approve the Disbursement List as outlined below. Matthew Gnatek supported. The motion passed unanimously.


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Re: Approval of Disbursements- Continued

Chairperson Jeffrey Pegg entered the Boardroom at 9:13 a.m. and Vice-Chairperson Megan Moslimani relinquished the Chair to Chairperson Pegg.


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Re: Approval of Refunds (Accumulated Contributions) John Serda moved to approve the Refunds/Accumulated Contributions list as outlined below Mark Diaz supported. The motion passed unanimously.

LIST NUMBER 3783 - $318,442.77 LIST NUMBER 3784 - $198,383.16

Trustee Angela James entered the Boardroom at 9:15 a.m. Re: Approval of the Frozen Defined Contribution Plan/ Employee Loan Program Michael Berent moved to approve the Frozen Defined Contribution Plan/ Employee Loan Program as outlined below. Mark Diaz supported. The motion passed unanimously.

LIST #1 04/11/2019 – $59,996.00 LIST #2 04/18/2019 – $53,945.00 Re: Approval of Minutes/Journal of Proceedings No. 3234 – (03/21/2019) Mark Diaz moved to approve the Minutes/Journal of Proceedings No. 3234 (03/21/2019) Matthew Gnatek supported. The motion passed by vote as follows: Yeas – Berent, Diaz, Gnatek, James, Moslimani, Naglick, Orzech, Pincheck, Serda, Watson and Chairperson Pegg - 11 Nays – None

Abstentions – Trozak- 1


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ASSISTANT EXECUTIVE DIRECTOR’S REPORT Assistant Executive Director, Kelly Tapper, addressed the following with the Board of Trustees:

Seminole Tele-Conference Call May 10th, 2019 at 10:00 a.m. o Any Trustee interested, please let Ms. Tapper know and she will R.S.V.P.

Nine Point Questionnaire Revision has been provided for review

Legal RFP Sample Questions

Email responses for Legal RFP Interviews were provided to the Trustees Board Lobbyist Dr. Oscar King III entered the Boardroom at 9:21 a.m.

Trustee Portia Roberson entered the Boardroom at 9:25 a.m. Re: Approval of Nine Point Questionnaire Matthew Gnatek moved to approve the Nine Point Questionnaire Revisions as presented by Ms. Tapper. Michael Berent supported. The motion passed unanimously. Re: Firm Specific Questions and Legal Discussion The Board of Trustees engaged in discussion regarding the “Firm Specific Questions” and disclosures as provided by Ms. Tapper. The Board decided to finalize the selection process following the Legal Firm Presentations by motion as listed below:

Re: Legal Firm Selection George Orzech moved that the Board of Trustees discuss and vote on/select a firm that is deemed conducive to the needs of the System following the final Legal Firm’s presentation on May 2nd, 2019. John Naglick supported. The motion passed unanimously.

EXECUTIVE DIRECTOR’S REPORT Executive Director, David Cetlinski, addressed the following with the Board of Trustees:

Retirement Systems office will be closed on Friday April 19th, 2019 in observance of “Good Friday”

Mr. Cetlinski updated the Board on former Retirement System Employee Dennis Linet’s passing and funeral services

The Police and Fire Board of Trustees will hold a Special Meeting following

the regular Police and Fire Retirement System Investment Committee meeting on May 13th, 2019 at 1:00 p.m.


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Trustee Matthew Gnatek excused himself from the Boardroom at 9:42 a.m. Trustee Dean Pincheck excused himself from the Boardroom at 9:42 a.m.

Trustee Matthew Gnatek returned to the Boardroom at 9:45 a.m. Trustee Dean Pincheck returned to the Boardroom at 9:50 a.m.

CHIEF INVESTMENT OFFICER’S REPORT Chief Investment Officer, Ryan Bigelow, in addition to his formal report, discussed the following matters with the Board:

Market overview

Private Equity Return

Summary Asset Allocation Report date ending March 31, 2019

Engagement of MGRA Genesis Value Fund, LP C/O American Realty Advisors

May 13th, 2019 Investment Committee topics

Chief Investment Officer’s Trip Summary Funding and liquidation updates

Status of DROP Plan Transfers

Re: Engagement of RSM- US LLP/ MGRA Genesis Value Fund, LP C/O American Realty Advisors Matthew Gnatek moved to approve the recommendation of Investment Staff to engage RSM- US LLP and ARA (American Realty Advisors) to assist with the IRS audit with respect to MGRA Genesis Value Fund. Dean Pincheck supported. The motion passed unanimously.

Re: Committee Formation: DROP Plan Transfer Committee The Board of Trustees established a committee tasked with the oversight of the DROP Plan Transfer. The following Trustees are interested in serving on the Committee: Mark Diaz, Matthew Gnatek, Michael Berent, Jeffrey Pegg, Dean Pincheck and George Orzech. Staff members: David Cetlinski, Kelly Tapper, Ryan Bigelow and General Counsel Ronald King. The Committee will meet on Tuesday April 23rd, 2019 at 10:30 a.m. following the Policy Committee meeting.


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LOBBYIST’S REPORT Lobbyist, Dr. Oscar King III, provided the Board with a legislative update as listed below:

Senate Bill 260

House Bill 4185 o Both bills are currently in appropriations.

Questions were raised from the Detroit delegation with respect to minority participation in the handling of the City of Detroit Pension funds. Dr. King suggests that the Board respond to this question in writing to the delegation; Chairperson Pegg will forward letter to Senator Sylvia Santana with respect to the inquiry.

Gas Tax update

GENERAL COUNSEL’S REPORT General Counsel, Ronald King, discussed the following matters with the Board:

Police and Fire Investment Committee process with respect to a special conference regarding the disapproval of Investment Committee Compensation Adjustments for CIO and Deputy CIO

Environmental Geo Technologies Update

Semi-Annual Foundation Reports o Interim confirmation executed by Investment Committee chair, Robert

Smith to comply with reporting requirements to Foundation for Detroit’s Future and the City of Detroit

FOIA Requests o Mandate Wire; The Financial Times o Public Plan IQ

Re: Authorization for F. Logan Davidson

George Orzech moved to authorize F. Logan Davidson to perform legal services, as necessary, with respect to the EGT transaction as discussed by General Counsel. Mark Diaz supported. The motion passed unanimously.


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NEW BUSINESS/OLD BUSINESS

Trustee Berent asked for and received an update with respect to the Life Assurance Fund

Trustee Trozak had questions regarding IRS Form 4506T (transcript request for employment earnings offset)

Policy Committee meeting update was provided o The Code of Conduct and Rules of Procedure were provided and will be

forwarded to the full Board for review

Conference Approval

Re: IFEBP Employee Benefits Conference October 20-23, 2019 Resolution Moved By: Trustee Diaz Supported By: Trustee Gnatek Resolved, that the Board approve the attendance of any interested Trustee, The Executive Director, The Assistant Executive Director and General Counsel at the aforementioned conference, and BE IT Further Resolved, that the Board approve expenditures for any interested Trustee, the Executive Director, The Assistant Executive Director and General Counsel to attend said conference, and BE IT FURTHER Resolved, that a copy of said conference brochure be provided to Retirement System Staff member JoAnn Harrison. The motion passed unanimously. Re: IFEBP Health Care Management Conference May 06--08, 2019 Resolution Moved By: Trustee Diaz Supported By: Trustee Gnatek Resolved, that the Board approve the attendance of any interested Trustee, The Executive Director, The Assistant Executive Director and General Counsel at the aforementioned conference, and BE IT Further Resolved, that the Board approve expenditures for any interested Trustee, the Executive Director, The Assistant Executive Director and General Counsel to attend said conference, and BE IT FURTHER Resolved, that a copy of said conference brochure be provided to Retirement System Staff member JoAnn Harrison. The motion passed unanimously.


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ADJOURNMENT

Portia Roberson moved to adjourn meeting #3236; Dean Pincheck supported. Chairperson Pegg adjourned the meeting at 11:21 a.m. The Board’s next meeting is scheduled for Thursday, May 02nd, 2019, at 09:00 a.m. in the Retirement Systems’ Conference Room, 500 Woodward Avenue Suite 3000; Detroit, Michigan 48226. RESPECTFULLY SUBMITTED,

Kelly Tapper, Assistant Executive Director

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